HOA Document Disclosure Laws in AL (houses, neighborhood, costs)

[Charles]

Originally Posted by ionlife

Even better, rent.

Renting can be tough because it might mean you have to move twice or even worse, kids might have to change schools twice. But, like I recommend on the CA forums a lot, for a huge diverse like LA, renting first can be extremely valuable. Huntsville/Madison is pretty small - not too many choices - you could almost buy a house without seeing it.

[ionlife]

Madison has TONS of empty apartments along Browns Ferry Road. FREE RENT. Go for it. They can't rent apts. so they are giving them away. There is another set opening up on County Line Rd. Woohoo, more inadequate planning? Who knows? Who cares? Let's put a gas station there for the soccer moms. Oh my. And the soccer dads? Well let them be smart and go to SAMS, COSTCO, OR WALMART.

BUT DON'T GO TO MINITMAN

[vet69729]

Originally Posted by ionlife

I thought I'd ask here as well as in the AL section.

What are the HOA doc disclosure laws here? In NoVA, we saw the docs and signed on them BEFORE we closed. To date, I have not received any docs, didn't sign any docs, and now I am told that the HOA covenant docs held by the declarant/developer are legally binding.

How can this be? I know that AL does not have a real estate disclosure law in place to protect buyers. But is this also the case for HOA documentation?

Any insight would be greatly appreciated.

The Alabama Legislature was supposed to be undertaking this task, since Madison City Council pass the Resolution July 26, 2010. Resolution Number 2010-211-R. I found out my community of Heartherwood in Decatur had a Protective Covenant and a Homeowner Association only when I was handed a "Abstract of Title" afterwards, signing my loan document. Had I known, I would have walked out on the deal. The developer ended up being a prick when I question why we were paying to maintain common areas that were not even deeded to the Association. That changed on July 19, 2011. Guess the pressure was too much. There is money not accounted for and that is yet to be seen. So be real careful as the Alabama Legislature is sitting on their hands on this one.

[vet69729]

There are no Disclosure laws in Alabama yet. Currently, there is supposed to be an upcoming Governors Task Force that will discuss this and to be completed by January 2012. Don't hold your breate though, as they allottted only $2000.00 for this project and doubt much will become of it. HOA are controlled by the developer and can and will foreclose on your home, even if you keep your mortgage up to date. The rules are really petty and HOA's may have been needed back in the 60's-70's, they are not today. The Protective Covenant's are in the mortgage papers, and on the title, so easy to hide from purchasers, and is the art of deception of most, as most people don't realized they signed into an association until after the fact and there is nothing you can do about it. You can get the homeowners together and if the majority agree, can get the HOA dissolved. Most think it is the best thing since apple pie. The HOA's are a simple way for builder's to generate a slush fund, why misappropreiation of the funds is so frequent. It is nothing but a scam, bleeding your hard earn money as if the price of your home isn't enough. Common areas have been a common tool, then they can put lights on signs and water meters for the grass to grow. The homeowners pay the freight while the builder sits back and laughs.

[vet69729]

Many people are not told of the covenants or Associations when buying a home that has one. I myself was not told until after I signed my loan papers and the lawyer came back and handed me an abstract of title and then said the Homeowners Association is in the back. The abstract of title is an 80 page document that is what you are probably looking for. Get your closing attorney and tell him they need to provide you with one.

You can possible go to your County's Probate Office and explain the problem and they may be able to provide the information you are looking for. If you know the builders name or name of your community you can go on-line and get that information also through tax records. That's all public information.

[vet69729]

There is a real need for a quick response of Legislatures to act on passing disclosure laws as the disception practice of hidding "Protective Covenants" that contain a fee based Homeowers Association's should be illegal. These developers have been corrupted by the lack of regulation and in the pockets of the cities for whom they work for, so they do as they please and could care less as they are the greedies pack of rats there is. Decatur is one of the worse corrupt City Departments as they get their palms greased on a regular basis it would appear, to allow what should be code violations and occupancy permits issued without even being inspected at times. The district attorney say they have no jurisdiction, and the Attorney General , needs to make some form of response as they do not respond to complaints.

[pmcarson25]

Alabama sucks -- most particularly in terms of laws to protect consumers and homeowners. HOAs can run amok here. No regulation. They can spend the money they assess you on anything they please, with no accounting to dues-paying association members whatsoever. Heck, HOAs don't even have to notice their meetings or permit dues paying members to attend. Moving to Alabama was the worst move I ever made.

[macwell]

Homeowners associations clamp down on rentals

Neighborhoods across the country are hiding the welcome mat from renters in a bid to protect property values, a trend that has put a strain on renters and homeowners alike.

[LCTMadison]

Bumping an old thread for an update from Montgomery....I know this is always a hot topic.

HOA legislation for now is dead. From what I was told, builders bucked up and killed it.

Its not over, there will continue to be a push for some sort of regulation, but not in this legislative year I don't think.

This puts us in a strange place IMO, as under caveat emptor we cannot require seller's disclosure, yet that information is required for closing.

All I can say is call your congressmen. Friend them on Facebook and tag them in your posts, that really gets their attention many times as it puts the issue out on social media and many times demands a response from them. Because this is ultimately a title issue we (Realtors) need to have the authority to require the seller's to disclose with the law backing us, and as of right now we cannot under current laws.

[NoleFanHSV]

As a I'll be a new homeowner soon with an HOA, I guess I'll witness first hand what happens. Luckily, Breland I think has most of the control of it until they exit, but that might only be in a few years.

When I was living in Florida, there was a city or county laws, can't remember now, that regulated HOA's. They actually had to file every year records about money brought in and money spent.

In Alabama, can a homeowner sue an HOA if the HOA is not on the up and up?